Tenon posts £1.5m loss

Tenon, the Aim-listed accountancy group, remained enigmatic about buyout
plans for the company today released as it posted a £1.5m statutory loss for the
the six months to the end of December 2005.

The group was expected to disclose further details on the possibility of an
MBO for the group by chief executive Andy Raynor with the interim results, but
chairman Neil Johnson would only say that ‘a number of expressions of interest
were being explored’ and could not predict ‘with certainty’ the review of
options for the business.

Johnson even went so far as to suggest that an MBO might not go ahead at all.

‘A transaction is only one of the alternatives that may prove
attractive, as our group is well-positioned and has substantial potential
value,’ Johnson said.

The £1.5m loss compared with a £1.9m profit over the previous
period. P
rofit before tax, goodwill amortisation,
terminated operations and other exceptional items
 halved from £4.2m to

Revenues, however, were up, climbing from £47.2m to £52.1m.

The group said that outsourcing, financial services and tax service lines had
experienced ‘double digit growth’ over the last six months and added that it was
confident of a ‘vibrant future’.

Tenon’s share price was unchanged at 24.25p on the back of the news.

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